BUSINESS and community leaders have urged Ted Baillieu to be bolder and more decisive as he passes the halfway mark of his first term, giving the government a mixed report card for its efforts so far.

A Sunday Age survey marking the second anniversary of the Coalition's election win has found that many still believe the government is stagnating, too slow to act, or failing to sell a credible policy agenda to boost the state.

With two years until the next election, leading figures have urged Mr Baillieu to fire up in a bid to boost infrastructure, grow jobs and improve public services.

''You've got to take the challenge and dare to be great,'' said trucking magnate Lindsay Fox, whose company is part of the Premier's business round table, and has been lobbying the government to use debt spending to ease traffic congestion and build a new port in Melbourne's southeast. ''While you've got the opportunity, make your mark.''

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Costa Group chairman Frank Costa, Master Builders Association of Victoria executive director Brian Welch and Australian Industry Group director Tim Piper commended the government for making a solid start despite financial difficulties. But they also said more should be done to articulate a clear agenda ahead of the November 2014 poll.

''I think the government has acknowledged there have been times it could have done a better job of selling its vision for the state,'' Mr Welch said.

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Others, however, were less impressed. Law Institute of Victoria president Michael Holcroft accused the government of taking too long to make key appointments across the justice portfolio, such as a new chief magistrate or anti-corruption commissioner.

Environment Victoria chief executive Kelly O'Shanassy was equally critical, saying the Coalition had taken the environment ''decades backwards'' through initiatives such as cattle grazing in the Alpine National Park, dismantling protection for natives species and slashing support for renewable energy.

The comments are contained in a survey of 10 Victorian business and community figures, who were asked to assess how the government was faring and what its key priorities should be over the next two years.

The findings come at a sensitive time for the government, which recently fell behind Labor in the polls for the first time since coming to office.

Mr Baillieu sought to allay concerns at a Liberal fund-raiser on Thursday night, using a lengthy speech to highlight many of the policies his government had implemented over the past two years.

The Premier has also shifted gear in recent days, with daily media appearances to generate positive news.

How leaders rate the Baillieu government

As Ted Baillieu approaches the second anniversary of his election victory, The Sunday Age asked 10 business and community leaders to tell us how they think the state government is faring. Here's what they said:

COSTA GROUP CHAIRMAN FRANK COSTA:

How would you rate the Baillieu government's first two years in office?

They have performed well under difficult economic circumstances.

What do you view as the government's a) biggest success to date; b) biggest disappointment?

a) There have been quite a few successes, including the expansion of the Port of Melbourne to handle the growth of exports and imports to the State and increased spending in rural and regional Victoria from the $1 billion Regional Growth Fund

b) No real disappointments, I had hoped the fresh fruit and vegetable wholesale market could be relocated to Werribee however work was already well under way on the new Epping site when the government came to power.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

Specifically transport infrastructure to accommodate our growing population and more generally effective communication of the government's agenda, priorities and plans.

Have they met your expectations so far?

Yes

Do you think they will get a second term?

Personally I think so, however there is a long way to go yet.

TRUCKING MAGNATE LINDSAY FOX:

How would you rate the government's first year in office?

They've been feeling their way, and that's typical of a first term in office. They've done two laps and there's two more laps to go. What they've got to do now is kick up.

What do you view as the government's a) biggest success to date; b) biggest disappointment:

a) Maintaining the AAA rating, when virtually all of the other states have been downgraded.

b) You've got to take the challenge and dare to be great. People have got to go to war and have aspirations of winning a Victoria cross or dying. In the political scene, if you fail, you finish. While you've got the opportunity, make your mark.

What do you think should be the government's top priority ahead of the 2014 state election?

Taking a lot of the truck traffic off the Westgate bridge and developing the port at western port. Now's the time to borrow money and do something about the infrastructure of Melbourne. The traffic congestion is at an all time low. Ted's got access to cheap money because of his credit rating; he should use that to borrow – to go into debt – and create a transport system where every Victoria gets to work in half the time than they do today.

Have they met your expectations so far?

His commitment to Avalon is good. I'd certainly like to see a commitment to western port.

Do you think they will get a second term?

I'll answer that question in this way: look at the election in America. Everyone thought he was going to get kicked out and they all went along with him in spite of him not delivering on what he said he would do. Quite often the devil you know is better than the one that you don't.

LAW INSTITUTE OF VICTORIA PRESIDENT MICHAEL HOLCROFT:

How would you rate the Baillieu Government's first two years in office?

The LIV believes that both the government and the economy are stagnating. The government is slow to introduce legislation and to appoint people to important roles. We point to the many critical vacancies in the Department of Justice, including secretary of Department of Justice, Chief Magistrate and the head of IBAC.

What do you view as the government's a) biggest success to date? b) biggest disappointment:

a) We are pleased that the government is rolling out a program to improve court infrastructure. We are pleased that the government has retained the Charter of Human Rights and Responsibilities, after taking into account community feedback.

b) Effectively reducing access to justice for most Victorians by not funding Legal Aid appropriately to meet increased demand caused by additional police; additional Department of Human Services child protection workers; tough on crime legislation and not being able to convince the federal government to maintain or increase its Legal Aid contribution (as a percentage of the total) despite increased demands, including the “people smuggler” trials.

We are also disappointed that the government has overseen jail overcrowding; prisoners being held in police cells for longer periods and juveniles being held in adult jails.

The government's support for baseline sentences will make sentences less clear and more difficult for the public to understand. The government is too quick to respond to public concern about safety with harsher sentences, without back up crime deterrence programs.

We have also lobbied the government to increase privacy protections and highlighted concerns reflected in several government and independent reports.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

Victoria Legal Aid has a funding crisis. Its most recent annual report posted a deficit of $3.1 million. VLA has recently announced it will no longer fund lawyers to represent people charged with traffic offences that may result in jail, unless they have a pre-diagnosed disability or psychiatric condition. Access to Justice for all Victorians must be a key priority.

Have they met your expectations so far?

No

Do you think they will get a second term?

We believe it is unlikely the government will be elected for a second term, based on its record to date. If it becomes more decisive and progressive, it will improve its chances.

How would you rate the Baillieu government's first two years in office?

Despite difficult economic times, the Baillieu government has rolled up its sleeves and taken tough decisions to keep our state's finances in the black. The government has been a prudent, responsible financial manager that has worked to identify the new major projects that will secure Victoria's future and cut costs for businesses.

We've seen lots of reviews but we now need to see some more action. Many builders, particularly home builders, have faced a dramatic slowdown in activity over the past year or two. The government issued a significant paper earlier this year looking at reforms to warranty insurance, registration requirements and resolving building disputes. These issues might not be headline grabbing but they could have profound impacts on building businesses, many of which are small family-run businesses. It has been months since submissions closed but we are still waiting for answers and still waiting for action.

What do you view as the government's a) biggest success to date; b) biggest disappointment?

a) Moves to reform and simplify Victoria's overly-complex planning laws have been at the forefront of this government's agenda. This is something we absolutely need. Updating planning zones, cutting red tape, creating a new metropolitan planning strategy and reducing planning time frames will benefit our industry. It will allow us to better deal with a tough market today and fully harness the opportunities of future economic growth too.

As one of Victoria's leading full-time job providers, the government's commitment to improving productivity is something we have strongly welcomed. Its initiative to create a new building watchdog will help protect construction sites from the lawlessness and thuggery that has plagued us in the past.

b) I think the government has acknowledged there have been times it could do a better job of selling its vision for the state. Our economy has fared much better than most developed societies, but consumer confidence remains disproportionately low. I think both sides of the political aisle, the business community and parts of the media could do more to instill confidence in our well-performing economy, because we cannot afford anyone talking it down.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

The top priority must be to create a balance sheet that opens up opportunities to invest in new major infrastructure projects that will benefit Victorians now and well into the future. We also need to make sure our industry is best placed to deliver these projects on time and on budget by investing in the skills of our people.

We need to continue to tackle housing affordability so that all Victorians have the opportunity to fulfil the great Australian dream of owning their own home. Buying a home is the largest investment most families will make at one time in their lifetime, so let's have it at the front and centre of public debate.

Has the government met your expectations so far?

Yes. After years of a booming economic growth, the government has been forced to tackle significant issues, tighten the spending belt and make tough decisions. This was best exemplified by the strong stance the government has taken on errant union behaviour in the building industry. However, I think the government needs to strive to act more boldly and decisively.

Do you think they will get a second term?

I prefer to leave such commentary to the professional political observers and clairvoyants. What I will say is that it's not in Victoria's interests for politics to be a mere popularity contest. Tough times require difficult decisions that aren't always popular and I think this government has made some hard choices rather than cut and run away from problems. As for predicting a result at the next state election: If a week is a long time in football, two years is an eternity in politics.

ENVIRONMENT VICTORIA CHIEF EXECUTIVE KELLY O'SHANASSY:

How would you rate the Baillieu government's first two years in office?

In just two short years the Baillieu government has taken our environment decades backwards. They've slashed support for renewable energy jobs and investment, opened up our national parks to cattle grazing and development, weakened the national plan to save the Murray River, undermined Melbourne's green wedges, systematically dismantled protections for threatened species and native forests, and moved to massively expand brown coal mining and export. It's hard to think of a two-year period that has been worse for our environment.

What do you view as the government's a) biggest success to date; b) biggest disappointment?

a) The decisions to double the state's energy efficiency target will reduce energy costs for homes and businesses though falls short of their election promise to improve Victorian homes to a 5-star average.

b) Their new wind farm laws effectively kill off any new wind farms in Victoria beyond what is already approved. This is costing regional Victoria jobs and investment and preventing our move away from polluting coal.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

To put the Victorian environment and economy on a sustainable footing. That means reducing our reliance on dangerous brown coal, and supporting renewable energy investment and jobs. It means halting the decline in the ecosystems upon which our economy depends, and restoring our rivers and wetlands to health. It means investing in energy efficiency and public transport, to ease cost of living pressures and make our city more liveable. It means supporting individuals and businesses to do the right thing, rather than shifting the burden onto the community.

Have they met your expectations so far?

No way.

Do you think they will get a second term?

That's not for us to say.

VICTORIAN FARMERS FEDERATION PRESIDENT PETER TUOHEY:

How would you rate the Baillieu government's first two years in office?

Given the tough financial conditions the Coalition faced on coming to power I'd give them a score of 60-70 out of 100. They've had to cut back spending in the face of a slump in GST and stamp duty revenue. It's all about delivering surplus budgets and maintaining the state's credit rating.

What do you view as the government's a) biggest success to date; b) biggest disappointment:

a) Delivering the first funds from the $1 billion Regional Growth Fund, followed by the government's efforts on the flood recovery, which continues for many communities.

They've also poured $160 million into road and bridge funding for 40 regional councils.

We've also been delighted the government has backed the VFF's position on ensuring the Murray Darling Basin Plan isn't just a federal government buyout of irrigation communities' water.

Replacing the onerous Fire Services Levy on insurance with a property-based tax has been a crucial election commitment the government is moving to deliver on July 1 (2013), but we still need to get the balance of the tax burden right.

b) The government's failure to deliver properly on its promise to exempt young farmers from paying stamp duty on the first $300,000 of land they purchased when buying their first farm.

Hopefully the government comes good and makes the scheme more accessible.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

It must put a strategy on the table and show how it will deliver on its commitment to double Victoria's food and fibre exports by 2030. This will involve more support for the next generation of farmers, strategies to promote careers in agriculture and investment in production research so we can grow more food.

We also want to see: an end to the endless red tape farmers face when trying to clear native vegetation on their land; a strategy to help farmers and their food processors deal with skyrocketing electricity prices.

Have they met your expectations so far?

It's not a question of yes or no. It comes down to how they've performed on issues that matter to farmers, as we've outlined above.

Do you think they will get a second term?

Depends on how they perform in the two years leading up to the next election. Regional Victoria will once again be crucial to the Coalition, if it wants to improve on its one-seat majority.

VICTORIAN TRADES HALL COUNCIL SECRETARY BRIAN BOYD:

How would you rate the Baillieu government's first two years in office?

The Baillieu government's first two years have been a great let down to working Victorians. We have seen important government services like the TAFE education system slashed, undermining vocational, training for young Victorians looking for a start in life and older Victorians trying to upskill in an ever changing work environment.

On top of this, we've seen thousands of jobs being lost in the manufacturing and services sectors on an almost weekly basis, with no state government policy strategy in evidence to reverse, or even halt, this disastrous trend.

What do you view as the government's a) biggest success to date; b) biggest disappointment:

a) Mr Baillieu's greatest success to date is actually holding on to the Treasury benches, with the scandal involving the Member for Frankston going to the heart of the government's credibility. In ordinary circumstances, Mr Geoff Shaw would have been suspended from the Parliament. Others have been for lesser activities.

b) Of greater disappointment is the treatment the Victorian government has meted out to our public sector workforce – for example nurses, disability services workers, medical scientists and public servants in general have endured long drawn out enterprise bargaining disputes with no good faith negotiations occurring. A highlight of this rancour is the pre-election promise of making our teachers the best paid nationally being reneged on without a blush!

What do you think the government's top priority should be ahead of the 2014 Victorian election?

Mr Baillieu and his team must make their top priority a determination to connect with Victorians and look like they are not an ideologically driven government in the mould of and being controlled by the office of the federal opposition leader.

'Victoria and Victorians First' should be its guiding philosophy with policies that kick-start building our badly needed infrastructure; that protect and stimulate jobs and finally treat our public sector workers with respect, not contempt.

Have they met your expectations so far?

No.

Do you think they will get a second term?

No.

AUSTRALIAN INDUSTRY GROUP STATE DIRECTOR TIM PIPER:

How would you rate the Baillieu Government's first two years in office?

The Baillieu government has dealt with some difficult issues since coming to government. It has made decisions around Myki, the Regional Rail Link, Webb Dock and been very supportive of the state's export push. Its position on environmental issues has supported a more reasonable and pragmatic policy, particularly reducing the carbon emissions target, which had left Victoria disadvantaged compared to the rest of the country. It needs to ensure there is a pipeline of infrastructure projects prioritised and that funding budgeted for projects in this financial year is expended.

What do you view as the government's a) biggest success to date; b) biggest disappointment:

a) The government's biggest success to date has been completing the planning and beginning implementation for the Regional Rail Project.

b) The government's unwillingness to advocate a national OH&S system is disappointing, as is its inability to achieve significant funding for infrastructure from the federal government.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

The government should ensure the business community is aware of its infrastructure priorities and ensure the public is conscious of its activities in road, rail and port development.

How would you rate the Baillieu government's first two years in office?

Half way through its first term of office, the Baillieu government has made sound progress in demonstrating responsible economic and financial management.

Tough decisions have been made to reduce unnecessary government expenditure and improve public service efficiency and productivity. The results have been positive, including a budget surplus and the maintenance of the state's AAA credit rating.

The government has met many of its pre-election commitments to raise service standards in areas like law and order, health, education and public transport. These are welcome and will have spin-off benefits to business and the wider economy.

What do you view as the government's a) biggest success to date; b) biggest disappointment?

a) Among the notable pluses are: the maintenance of a budget surplus – and Victoria's AAA credit rating; commitment to the proposed east-west link and progression of the Melbourne Metro rail project; major planning reforms; a three per cent cut in employer WorkCover premiums; a major investment in the Port of Melbourne; the restoration of clearway times in inner Melbourne; reforms to the taxi industry; a strong commitment to cut red tape, and the removal of the ban on Easter Sunday trading; industrial relations advocacy to support more flexible working hours in the retail sector and encourage better workplace relations and lower costs in the construction sector; financial support for the Regional Growth Fund (RGF); the recruitment of additional teachers and allied reforms to improve state education and training, including VET reform; support for flood recovery, including the VECCI Business Relief Fund (VBRF); termination of the previous government's plan for the closure of two units of Hazelwood Power station; active focus on working with Victorian firms to develop new export opportunities in India and key emerging Asian markets through a new international engagement strategy. This includes Victoria's first-ever dedicated tourism campaign in China; a $58 million manufacturing strategy; securing of new tourism/business events for Melbourne and continuing support for existing major events (e.g. Grand Prix).

b) biggest disappointment: the changes to the TAFE funding system were good public policy, however the timelines surrounding the implementation may well have done better to have been phased in over a greater period of time, therefore allowing for greater staff and resourcing preparation.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

There are a number of priorities for business ahead of the 2014 election. These include: funding for the extension of the Melbourne Exhibition Centre; delivery of the stated red tape reduction target (25% by 2014); the progression of major infrastructure projects like the east-west link and Melbourne Metro Rail Project, recognising the importance of federal government funding support; a commitment to explore options for longer-term state taxation reform; maintenance of a budget operating surplus and continued expenditure restraint; the release of a Small Business Statement; continuing support for Victoria's regional businesses and their communities; continuing support to help Victorian businesses actively engage in emerging export markets.

Have they met your expectations so far?

Yes.

Do you think they will get a second term?

(did not answer)

VICTORIAN COUNCIL OF SOCIAL SERVICE CHIEF EXECUTIVE PENNY WILSON:

How would you rate the Baillieu government's first two years in office?

Shows promise, we look forward to delivery. The government made a good start in keeping election promises to vulnerable people and in taking a whole-of-government approach to service delivery and reforms – particularly given the tough economic climate.

They now need to act on the big issues: keep going on the good work started on responding to the Protecting Victoria's Vulnerable Children inquiry, address Victoria's affordable housing crisis and develop a social housing framework, fix public transport in underserviced areas, improve education outcomes for vulnerable young people, and implement proposed reforms that place people at centre of the service system.

They must also to stop the slide we've seen in some areas, like cuts in schools' portion of EMA and VET funding that are likely to have significant impact on vulnerable people and disadvantaged communities, particularly in outer metro and rural and regional areas.

What do you view as the government's a) biggest success to date; b) biggest disappointment:

The focus on vulnerable children and young people, through the Protecting Victoria's Vulnerable Children Inquiry by Justice Philip Cummins, has been significant. Critically, the government has recognised that this is not just a child protection issue or something to be handballed to the Department of Human Services, but will rather take all parts of government and community to make happen. Recognising this is a shared responsibility and developing a whole-of-government strategy with appropriate resourcing will be critical to its success. Establishing an Independent Children and Young People's Commission has also been an important success in this area.

VCOSS was also pleased that the government amended some pre-election commitments when shown evidence that the policies were problematic. In the justice area this includes the continuation of Neighbourhood Justice Centres and Koori Courts (which had originally been slated to be dumped) and the commitment to introduce mandatory minimum sentences for 16 and 17 years olds for gross violence being deferred. The focus on diversion in youth justice is also positive.

b) The ongoing and expensive commitment to PSOs; substantial changes that effectively cut VET funding, the schools' portion of the Education Maintenance Allowance and the School Start Bonus. These changes demonstrate misguided priorities that mean short-term savings will have long-term negative impacts for the community.

What do you think the government's top priority should be ahead of the 2014 Victorian election?

Deliver on their promises. It's time to implement the reforms they have proposed and begin to deliver on their promise to Victorians. The government must start acting to put much-needed infrastructure, resources and services into areas with serious gaps, particularly Melbourne's growth areas and chronically underserviced parts of rural and regional Victoria. Otherwise we will see entrenched disadvantage in these areas for generations to come.

Have they met your expectations so far?

For the most part.

Do you think they will get a second term?

Yes – but they will need to rethink short-term savings and consider longer-term impacts if they are to deliver on their promise to Victorians.